“We have a unique opportunity here to push to lower the cost of practically everything on this island before Christmas,” Calvo said. “Almost everything we buy is shipped to the island.”
Calvo wrote to Matson on Thursday, thanking the company for its commitment to Guam and pointing to the increased business Matson will receive since the pullout of Horizon.
“It’s all about economies of scale,” Calvo said. “Matson’s business will increase to 100 percent of all U.S. shipping to and from Guam. That should provide an opportunity to reduce rates.”
Calvo praised Matson for its long commitment to and investment in the community.
Rather than seeing Matson’s new role as having a monopoly on shipping, Calvo foresees an opportunity for Matson to show the community that it is a business committed to the long-term sustainability of the island, according to the governor’s office.
Horizon has announced its pullout from Guam, due to circumstances involving its business with nearby Asian communities.
“I’m sure this will work out for Horizon’s local workers,” Calvo said. “When Matson assumes 100 percent of U.S. shipping capacity, they will need to increase their employment role and they will need those professionals from Horizon.”
Briefing
The Port Authority of Guam echoed some of the concerns they shared with senators last week about the potential impacts Horizon Lines’ termination of services could have on Guam, during an informational briefing Thursday in the Legislature’s public hearing room.
The changes, PAG operations manager John Santos said, may result in requiring additional equipment, personnel and other necessities in order to maintain operations.
Sen. Tom Ada, Committee on Transportation and Utilities chairman, said he is aware that Matson Navigation’s carriers do not operate at full capacity.
In light of this, Ada sought assurance that Matson will have the necessary capacity to handle the additional load as a result of Horizon’s pullout.
